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Tax-Loss Harvesting Calculator

See the tax saving from harvesting capital losses — offsetting gains, deducting up to $3,000 against income, and carrying the rest forward.

Realized capital losses

Realized capital gains to offset

Capital gains tax rate

Ordinary income tax rate

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How it works

Losses first offset capital gains (at CG rate) · then up to $3,000 deducts against ordinary income · remainder carries forward · Saving = offset gains × CG rate + income offset × ordinary rate

Tax-loss harvesting turns a paper loss into a real tax saving: realized losses first cancel out capital gains dollar-for-dollar, then up to $3,000 of any leftover can be deducted against ordinary income each year, and anything beyond that carries forward indefinitely. Because gains are taxed at capital-gains rates but the $3,000 comes off ordinary income, the deductible slice is often worth more per dollar. Watch the wash-sale rule — buying the same or a substantially identical security within 30 days disallows the loss.

Worked example

With $10,000 of losses and $4,000 of gains, the first $4,000 wipes out the gains (saving 15% = $600), the next $3,000 offsets ordinary income (saving 24% = $720), and $3,000 carries forward — about $1,320 saved this year.

Frequently asked questions

What is the wash-sale rule?

If you buy the same or a substantially identical security within 30 days before or after selling at a loss, the IRS disallows the loss for now and adds it to the cost basis of the replacement shares. Harvesters usually switch to a similar but not identical fund to stay invested.

How much loss can I deduct against income?

Up to $3,000 of net capital loss per year ($1,500 if married filing separately) can offset ordinary income. Losses beyond that carry forward to future years with no expiration.

Do carried-forward losses expire?

No. Unused capital losses carry forward indefinitely, offsetting future gains first and then up to $3,000 of income each year until used up.

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Educational estimate only, using simplified federal rules — it ignores state tax, credits, phase-outs and your full situation. Not tax, legal or financial advice; confirm with a professional.